There’s no denying the impact that e-commerce is having on overall fast-moving consumer goods (FMCG) sales. While e-commerce has driven 7% of all U.S. FMCG sales this year, it’s driven nearly all the growth. What’s more, consumers are growing in familiarity and comfort with online outlets, as consideration of trips to nonphysical stores is up 50% from 2015. Sales growth from brick and mortar channels is flat at 0.1%. The upside here is that the majority of traffic still lies within the stores. That means manufacturers and retailers simply need to capitalize on the opportunity that’s already there—whether that be through engaging in-store displays, competitive pricing, special promotions, etc.
With so much talk about the growth of online sales and market fragmentation, it’s important to understand the behavioral motivations for shopping—and not shopping—online. This is particularly relevant for grocery items, some of which are less likely to land in consumers’ online baskets.
Notably, there are specific reasons why consumers opt to head to the store for an item or choose to buy one online. And therein lies the insight for retailers—on and offline alike: Understand why consumers shop with you and make sure you offer what they’re looking for—and more, when possible.